Mortgage Interest Deduction

slim97 · ‎February 16, 2021

I paid off my home mortgage in 2020, after the lender (escrow) had paid for my spring taxes, but before my fall payment was due. I paid the fall tax payment myself. The 1098 from the lender only shows the tax payment they made. How do I tell Turbo Tax about the taxes I paid directly?

Cynthiad66 · ‎February 16, 2021

Add the two and deduct the total paid on Schedule A itemized deductions.

Homeowners who itemize their tax returns can deduct property taxes they pay on their main residence and any other real estate they own. This includes property taxes you pay starting from the date you purchase the property. The official sale date is typically listed on the settlement statement you get at closing.

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Opus 17 · ‎February 16, 2021

Turbotax should have a question, "did you pay any other real estate taxes" because not everyone has a mortgage and you can deduct property taxes on a second home even though you can't deduct mortgage interest on a second home. It may come after you close out the 1098, or you may have to click something like "Show me more options" or "Let me choose what to work on".